US Regulators Start Soliciting Interest for Signature Bank Bids

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US regulators have begun soliciting interest from potential buyers of Signature Bank, the New York-based lender that was seized by the government on Sunday, according to people familiar with the matter. 

The Federal Deposit Insurance Corp. has opened a so-called data room, enabling potential bidders to begin due diligence of the bank, said one of the people, who asked not to be identified discussing private information. 

An FDIC representative didn’t immediately respond to a request for comment.

Federal regulators swept Signature into receivership just days after the demise of fellow crypto-friendly bank Silvergate Capital Corp. and SVB Financial Group’s Silicon Valley Bank. Signature was closed after regulators lost faith in management and depositors fled, according to officials at the New York Department of Financial Services, which put the bank into receivership.

All Signature deposits and substantially all of the firm’s assets went to Signature Bridge Bank NA, a full-service lender to be operated by the FDIC, as it markets the institution to potential bidders. 

The announcement of its closure coincided with a slate of measures out of Washington, including the Federal Reserve’s creation of a new lending program for banks, aimed at ensuring they can meet any customer requests to withdraw money.